Battle of the $100 Billion Deals: AMD & NVIDIA Both Pin Strategy Hopes on OpenAI

Key Points

NVIDIA recently signed a $100 billion agreement with OpenAI on a partnership that could expand to 10 gigawatts of data centers. Beyond the fact this deal provides substantial revenue for NVIDIA, it also allows the company to work with OpenAI’s ‘self-build’ project and pushes the company’s ‘extreme co-design’ strategy even further.
AMD’s deal with OpenAI is strategically important because it gives AMD an ‘anchor tenant’ of a hyperscaler fully bought into AMD for a major project. That’s important as AMD looks to close the gap with NVIDIA in areas like selling full systems.
Overall, while NVIDIA shares have massively underperformed AMD since October 6th when AMD announced their deal with OpenAI, the company remains very well positioned with some Wall Street analysts now calling for $11 in EPS in 2027.
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By Eric Bleeker Published Oct 20, 2025 at 8:13 AM EDT

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Battle of the $100 Billion Deals: AMD & NVIDIA Both Pin Strategy Hopes on OpenAI — © Canva

NVIDIA (Nasdaq: NVDA) recently agreed to a partnership with OpenAI that could see the company invest up to $100 billion into the company in exchange for 10 gigawatts worth of chip purchases. Shortly after, AMD (Nasdaq: AMD) announced its own deal with OpenAI that could see the company sell 6 gigawatts worth of chips (valued at $90 billion to $100 billion) to the fast-growing ChatGPT creator.

Since AMD’s announcement on October 6th, its shares have rallied 42% while NVIDIA’s shares have fallen slightly. In addition, criticism has grown across the media that these deals represent a new form of circular ‘vendor financing’ that is a repeat of the Dot-Com bubble. In the segment below, taken from 24/7 Wall St’s AI Investor Podcast, analysts Eric Bleeker and Austin Smith break down the strategic differences between AMD and NVIDIA striking their deals with with OpenAI.

For NVIDIA, its important to look at the details of their OpenAI agreement. The company’s chips in the partnership are being used in OpenAI’s ‘self-build’ project. The partnership leads to more sales for NVIDIA, but it also provides them an unprecedented scale in working with a company building data centers at the same scale as leading hyperscalers like Microsoft and Amazon.

AMD’s deal with OpenAI is costly since it dilutes existing shareholders. OpenAI is provided with warrants to purchase up to around 10% of AMD’s shares as part of the deal. However, the deal gives AMD the equivalent of an ‘anchor tenant’ for its ambitions to be a complete system builder that can compete more effectively with NVIDIA’s leading systems like NVL 72. You can view our full discussion below for more details.

Watch Our Discussion On The Strategic Reasons Both NVIDIA and AMD Struck Major Deals with OpenAI

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